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HomeMy WebLinkAbout12 0911 minThe Plainview City Council met on September 11, 2012 at 7:00 p.m. in the City Council Chambers of the Plainview City Hall at 901 Broadway. The agenda for this meeting was posted in City Hall at 11:20 a.m. on September 7, 2012. Mayor Wendell Dunlap presided. Councilmembers present were: Charles Starnes - District 1, Cathy Waggoner - District 2, David Garcia - District 3, V. O. Ortega- District 4, Shane Martinez- District 5, Lionel Garcia - District 6 and Eric Hastey- District 7. Staff members present were: Greg Ingham -City Manager, Jeffrey Snyder- Assistant City Manager, Leslie Pearce -City Attorney, Mike Gilliland- Director of Public Works, Will Mull - Police Chief, Rusty Powers -Fire Chief, Sarianne Beversdorf- Director of Finance, Eric Turner -Main Street/CVB Coordinator, Daniel Born - Information Technology Specialist and Belinda Hinojosa -City Secretary. News Media Present: Jessica Thornton - Plainview Herald Councilmember Chares Starnes delivered the invocation and led in the pledge of allegiance. Councilmember Waggoner moved to adopt the consent calendar. The motion was duly seconded by Councilmember Lionel Garcia and carried by unanimous vote. Items approved on the consent calendar included the approval of the minutes of August 28, 2012 and September 6, 2012; and approval of the financial reports. Greg Ingham, City Manager presented information on the 2012 -2013 proposed tax increase. The budget document presents in financial terms the overall plan for providing municipal services during the coming twelve months. This budget provides funds for the current level of services and provides a basis for a higher level of services in the future. It also provides funds to comply with State and Federal mandates and provides for improvements to the City's infrastructure that are necessary to ensure progress and development. A significant effort has been made to control costs to minimize the increases needed for operations, and we are making organizational adjustments to help us better meet the demands we are facing. A brief look at the 2011 -2012 Fiscal Year shows that it has been focused on the future. Some of the projects the City has worked on are: • Updating its Comprehensive Plan, which was last done in 1989; • The City and County are working with the Airport Board to develop an Airport Master Plan to help guide the development of the Plainview /Hale County Airport; • Awarded 4.3 million to rehabilitate and reconstruct portions of runways with the state paying 90% of that; • Building two new water towers to improve overall water system in Plainview; and • Work with state on Highway 70 reconstruction. The total expenditures for all funds for the coming year are $31,084,783 which is about $385,000 over last year's total funds. The budgeted revenues for the major operating City Council Minutes September 11, 2012 Page 1 of 5 137 138 funds are $22,208,895. The budgeted expenditures for the major operating funds are $22,148,200 which is a 2.4% increase. The property tax rate makes 37% of the general fund revenues, sales tax is 30% and franchise fees are 15% of the general fund revenues. Sales tax collection from 2006- 2008 saw an increase but recent years have been fairly flat. While that is not good, other cities in the State of Texas have seen a significant decrease in their sales tax. We have hit the projected number and should be at the same level or slightly higher. This year's budget includes the same tax rate as last year. Services that make up the budget are as follows: • Unger Library — Budget $412,400; • Streets and Traffic Safety — Budget $1,275,430; • Plainview Hale County Health Department — Budget $389,820; • Animal Control — Budget $145,615; • Community Development — Budget $143,440 • Code Enforcement — Budget $229,005; • Main Street — Budget $101,985; • Convention & Visitors Bureau — Budget $222,640; • Parks Department — Budget $717,685; • Plainview Police Department — Budget $3,459,905; • Fire /EMS Budget — Budget $3,182,455. The total general fund expenditures are $11,978,515 of which fire and police are the biggest expenditures. As we move into the 2012 -2013 Fiscal Year the City will be working with the County and the Airport Board on a major Rehabilitation /Reconstruction project that will see $4,300,000 in improvements made to the airport over the next two years. The City's portion of the cost is 5 %, the County will pay 5 %, and the Federal Aviation Administration will pay 90 %. The City also works closely with the Y. The Y operates the City's summer youth program known as SAFE camp and they operate the City owned swimming pool at the 16 Street Park. Their financial reports indicate that they have not fully recovered their costs for operating those programs so we have included an increase in the proposed amounts for 2012 -2013 and we have created a category for expenditures at the City's Civic Center operation. One thing that we have to keep at the forefront is our employees. It is because of their commitment that we have been able to control our overall costs so that we could strengthen the overall financial position of the City in the current year and as positions are eliminated, many of the services that were provided by those positions will be picked up by other positions to the extent possible. This budget includes a 2.5% cost of living adjustment for all employees. In order to fund the operation for the coming 2012 -2013 Fiscal Year, including the addition of an additional Code Enforcement Officer, the Proposed Budget includes the same tax rate that was used in the 2011 -2012 Fiscal Year. City Council Minutes September 11, 2012 Page 2 of 5 The proposed tax rate for 2012 -2013 is $0.5785 which is the same as the adopted tax rate for 2011 -2012. The effective tax rate for 2012 -2013 is $0.5712 and the rollback rate for 2012 -2013 fiscal year is $0.6280. Councilmember Ortega moved to open a public hearing on the proposed tax increase. The motion was duly seconded by Councilmember Starnes and carried by unanimous vote. Mayor Dunlap asked for public comment. There was no public comment. Councilmember Ortega moved to close the public hearing. The motion was duly seconded by Councilmember Starnes and carried by unanimous vote. Mayor Dunlap closed the public hearing at 7:28 p.m. Mayor Dunlap announced that a vote on the first reading of the ordinance to adopt the proposed tax rate will be held on September 20, 2012 at 11:30 a.m. at the Plainview Convention Center, 2902 W. 4 th Street. A vote on the second and final reading of the ordinance to adopt the proposed tax rate will be held on September 25, 2012 at 7:00 p.m. in the City Council Chambers at City Hall, 901 Broadway. Mr. Ingham presented information on the 2012 -2013 City of Plainview budget. The Solid Waste Management Fund is an Enterprise Fund, which means that it supports itself with the revenues it generates. It does not use the Equipment Replacement fund for equipment purchases but instead pays cash or sometimes uses the Solid Waste Improvement Fund for the equipment or improvements that are needed. The financial position of the Solid Waste Management Fund and the Solid Waste Improvement Fund are tied together because the Solid Waste Improvement Fund is where major capital projects are funded. The Proposed Operating Budget for 2012 -2013 is $3,014,055 compared to $3,012,320 in 2011 -2012. This year we will be replacing one residential collection truck ($170,000); one commercial frontload collection truck ($250,000); and we have budgeted funds in the Solid Waste Improvement Fund to start the process of developing and building a new ten acre landfill pit at an estimated cost of $1.1 million. In order to fund the current operating needs for these departments and to develop a revenue stream from the Solid Waste Management Fund to the Solid Waste Improvement Fund, a two percent (2 %) increase has been included in the Proposed Budget. This will increase the base residential bill from $18.71 to $19.08. The operating expenditures for the Water and Sewer Fund for Fiscal Year 2012 -2013 are proposed to be $5,799,365 compared to $5,593,355 for 2011 -2012. The Water and Sewer Operating Fund is an enterprise fund, and it supports itself with the revenues generated. The Water and Sewer System Improvement Fund is linked with the Water and Sewer Operating Fund and that is where certain capital projects are funded. The Water Production budget is $1,499,965; the Wastewater Collection budget is $325,985; the Water Distribution System budget is $574,875; and the Water City Council Minutes September 11, 2012 Page 3 of 5 139 140 Reclamation Plant budget is $968,595. The Water & Sewer Fund revenues are projected to be $7,197,500. The largest part of the increase in the Water and Sewer Fund Operating budget is due to increases in the cost of maintenance at the wastewater treatment plant due to the fact this plant is now ten years old and major operating units are requiring repair and replacement. There are also a couple of significant projects in the W &S Improvement Fund that are scheduled for the coming year. Improvements to the Booster Pumps at the Kokomo pump station are projected to be $285,000 and it is scheduled to rebuild one mixer at the Wastewater Treatment facility at a cost of $60,000. There are four mixers at the facility and the plan is to rebuild one each year until all four have been rebuilt. In order to fund the Water and Sewer Fund adequately and to keep the funds on sound footing we have proposed an increase in the base sewer rate from $10.55 to $11.05 per month and the rate per thousand will increase from $1.53 to $1.60. These increases will raise a basic 5,000 gallon sewer bill from $18.20 to $19.05. The RSVP Fund is experiencing change this year as their funding sources are cut back and their operating rules are changed. While the City sponsors RSVP and handles their accounting, the City has not directly funded the program historically. This year has seen RSVP leave their offices at Wayland due to the growth of Wayland's athletic programs and RSVP is now located in the basement of the Library. Plus when you look at their proposed budget it appears to be significantly smaller and that is because they cannot use the in -kind match from the City since we are their sponsor. However, they are continuing to look at other funding sources and adjusting as the processes change. The Fair Theater continues to host a variety of activities. We will be facing some challenges there as we move forward because they had had a group that used the Theater weekly that is no longer using the facility so we are projecting a revenue drop for the coming year. The Service Center provides numerous services to multiple departments and is supported with revenues generated through the shop services it provides and direct transfers from user funds. In an effort to control overall expenditures one clerical position has been removed from this budget. Our other Internal Service Funds such as the Health Insurance Fund, Property Insurance Fund, and Cafeteria Plan continue to function as designed. The main area we are monitoring here is the Health Insurance Fund. As our loss experience has gotten worse and health costs have continued to climb we have seen some negative impacts on this fund and we are taking steps to move the overall direction of this fund in a positive direction. The Hotel /Motel Tax Fund continues to be active through our Main Street/CVB operations and works to actively encourage groups to use our facilities for meetings and seminars, as well as encouraging general tourism. We have a conservative budget but the City continues to move forward. Councilmember David Garcia moved to open a public hearing regarding 2012 -2013 City of Plainview Budget. The motion was duly seconded by Councilmember Waggoner and carried by unanimous vote. City Council Minutes September 11, 2012 Page 4 of 5 Mayor Dunlap asked for public comment. There was no public comment. Councilmember David Garcia moved to close the public hearing. The motion was duly seconded by Councilmember Ortega and carried by unanimous vote. The public hearing was closed at 7:49 p.m. Mayor Dunlap announced that a vote on the first reading of the ordinance to adopt the budget will be held on September 20, 2012 at 11:30 a.m. at the Plainview Convention Center, 2902 W. 4 Street. A vote on the second and final reading of the ordinance to adopt the budget will be held on September 25, 2012 at 7:00 p.m. in the City Council Chambers at City Hall, 901 Broadway. Mr. Greg Ingham, City Manager presented for consideration to authorize Mayor to sign Texas Department of Transportation Grant for Routine Airport Maintenance Program TxDOT Project No. AM 2013PLNVW. This grant will cover the TxDOT Automated Weather Observation System (AWOS) maintenance contract to continue the required monitoring and certification of our AWOS; monthly AWOS AviMet Data Link fees; and a line item for General airport maintenance which can include things like weed spraying and crack sealing. The total grant project amount is for $24,440. Fifty percent of that amount comes from TxDOT Aviation and the City and County are responsible for the other 50% which comes to $12,220. The City's portion of the grant is 25% or $6,110. Mayor Dunlap asked for public comment. There was no public comment. Councilmember Ortega moved to authorize Mayor to sign Texas Department of Transportation Grant for Routine Airport Maintenance Program TxDOT Project No. AM 2013PLNVW. The motion was duly seconded by Councilmember Waggoner. Councilmember Lionel Garcia asked where in the budget would that money come from. Mr. Ingham stated that it would come from the general fund. We currently have $5,000 in the budget for the airport and the remaining amount would come from the capital improvement program. Mayor Dunlap asked for a vote on the matter. The motion carried by unanimous vote. There being no further business, Mayor Dunlap adjourned the meeting at 7:55 p.m. Belinda Hinojosa City Secretary City Council Minutes September 11, 2012 Page 5 of 5 141